AAON Inc (AAON)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 229,849 | 261,668 | 255,049 | 238,373 | 231,788 | 210,271 | 182,268 | 148,038 | 126,749 | 85,925 | 69,289 | 73,867 | 69,284 | 83,078 | 89,209 | 85,932 | 95,511 | 97,721 | 86,471 | 81,802 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 824,582 | 796,856 | 740,498 | 784,808 | 735,224 | 682,484 | 660,111 | 609,414 | 560,714 | 523,858 | 490,506 | 480,156 | 466,170 | 400,279 | 383,726 | 373,038 | 350,865 | 344,892 | 322,695 | 306,323 |
| Return on total capital | 27.87% | 32.84% | 34.44% | 30.37% | 31.53% | 30.81% | 27.61% | 24.29% | 22.60% | 16.40% | 14.13% | 15.38% | 14.86% | 20.76% | 23.25% | 23.04% | 27.22% | 28.33% | 26.80% | 26.70% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $229,849K ÷ ($—K + $824,582K)
= 27.87%
AAON Inc's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital increased from 26.70% in March 2020 to a peak of 34.44% in June 2024, indicating efficient utilization of both equity and debt to generate profits for the company. There was a noticeable decline in the return on total capital in the following quarters after June 2024, with a decrease to 27.87% by December 2024.
Overall, the return on total capital for AAON Inc has displayed a generally positive trend, with some periods of volatility. It is important for the company to closely monitor and manage its capital allocation strategies to ensure sustainable and consistent returns for its investors and stakeholders.
Peer comparison
Dec 31, 2024